Colorful Capital

We want to share an important update regarding the future of Colorful Capital. Due to a combination of challenges, we have made the difficult decision to end our efforts towards a fund.    While this decision is not without its disappointments, we are proud of the journey we've embarked on over the past three years. Together, we have made meaningful contributions—including investments, whitepapers, speeches, and thought leadership—that have resonated deeply within the venture capital and impact investment communities. We’ve also had the privilege of collaborating with an incredible array of founders, students, colleagues, advisors, and partners, all of whom have helped us uncover and nurture extraordinary talent within our vibrant and diverse community. Read more from this announcement here: https://lnkd.in/eW--2S2q   We are profoundly grateful for the unwavering support of those who share our belief in the importance of economic empowerment and opportunity for LGBTQIA+ founders and professionals. As we look ahead, we invite you to explore our latest whitepaper, which serves as a powerful reminder of the systemic inequities that continue to hinder LGBTQIA+ economic strength and progress. This whitepaper is not only a call to action but also a clear demonstration that addressing these inequities is both a moral imperative and an economic opportunity. Read the white paper here: https://lnkd.in/ggxWUP5f   This work is far from over, and our commitment to the LGBTQIA+ community remains as strong as ever. Despite the challenges presented by the current market, we are resolute in our mission to advance capital access. We will continue to pursue this mission in our individual capacities, leveraging our unique platforms, networks, and expertise.    Rest assured, you will continue to see us on the front lines.    With hope and determination,   Megan Kashner & William Burckart

We are excited to host a webinar on September 13, 2024, from 10:30 a.m. to 12:00 p.m. ET, focused on how investment can address the systemic risk of #LGBTQIA+ inequity. This webinar, which builds on the recently released report “Outsized Impact,” will explore how #LGBTQIA+ inequity is nothing short of a systemic challenge that poses considerable risks to the U.S. economy and financial system. Register here: https://lnkd.in/eswBhjMg Megan Kashner (Colorful Capital) will open the webinar, and William Burckart (Colorful Capital, TIIP - The Investment Integration Project, and Columbia | SIPA) will provide an overview of key findings from the "Outsized Impact" report. They will be followed by a panel moderated by Cambria Allen Ratzlaff (Principles for Responsible Investment), including Aeisha Mastagni (CalSTRS), Jesse Beck (Mercer), and Traci Keen (Mate Fertility). Respondents Eric Krull, MBA (Out in Finance), and Tarik Perkins (StartOut) will reflect on the discussion and detail how their organizations are helping to bridge the divide between capital markets and LGBTQIA+ progress. The webinar, co-hosted by the Interfaith Center on Corporate Responsibility (ICCR), PRI, Out in Finance, StartOut, and TIIP - The Investment Integration Project, will examine the systemic inequities affecting the LGBTQIA+ community and introduce actionable investment frameworks. #VC #impactinvesting #venturecapital https://lnkd.in/eswBhjMg

We're pleased to share a new piece out today in ImpactAlpha on "Mitigating the systemic risk of anti-LGBTQ+ sentiment in investing." The article, authored by Colorful Capital Co-GP William Burckart, provides a snapshot into The White House convening last month, which gathered for the first time a group of venture capital investors, industry associations, and entrepreneurs for a dedicated discussion on the state of capital allocation to #LGBTQ+ led and focused funds and startups. Organized by Patrick Driscoll, a leading investor and advocate for LGBTQ+ equity, the goal was to educate public sector leaders on the barriers that LGBTQ+ fund managers and startup founders face and provide actionable recommendations to improve the flow of capital. From the article: "All of these policies and practices have tremendous effects on our economy and financial system. We see income disparities, workplace discrimination, lack of corporate leadership, criminal justice and persecution, disparities in healthcare, education, and treatment of LGBTQ+ youth, and lack of housing and retirement support. These issues drain resources, while also preventing LGBTQ+ individuals from fully participating in the economy." [In reference to the deluge of anti-LGBTQ+ bills being introduced at the state level throughout the US.] "The exclusion of LGBTQ+ individuals from our economy, and specifically, the investing space, is what is known as a “systemic risk.” Most investors believe markets are objective and efficient in pursuit of returns. Yet the market fails to account for the true level of systemic risk arising from continued inequitable treatment of and barriers for the LGBTQ+ community." The event inspired a range of challenges, opportunities, and breakthroughs needed going forward, but one clear call to action that emerged from the meeting is the opportunity for the U.S. Securities and Exchange Commission to replicate or adapt SEC’s Asset Management Advisory Committee's subcommittee focused on gender and racial diversity. Creating a similar subcommittee within the SEC to focus on LGBTQ+ issues, or expanding the scope of the existing subcommittee to explicitly encompass LGBTQ+ individuals could help to mitigate the risk of LGBTQ+ exclusion within the market and futureproof progress. Read the ImpactAlpha article here: https://lnkd.in/emVcdAuV For more, check out Colorful Capital's recent report co-authored by William and Lloyd He, with an introduction by M.V. Lee Badgett on "Outsized Impact: How Investment Can Address the Systemic Risk of LGBTQIA+ Inequity": https://lnkd.in/ggxWUP5f Copying in the Colorful Capital brain trust: Co-GPs Megan Kashner and Soltan B., and Advisory Group members Sloane Ortel, Zach Stafford, Steven Godeke, Otho Kerr, Priya Parrish, Katrina Ngo, Christopher Barrett Politan, Lara Metcalf, Carlos Vargas #impactinvesting #VC #venturecapital

Read about LGBTQ+ representation on corporate boards, including insights from our own Megan Kashner who is quoted saying: "I would encourage current board members who have the privilege of being on the inside to be that first voice and second voice and part of the chorus that brings [LGBTQ+] representation on the board forward." and "Do you know your fellow board members' wives' names? Probably. How many kids they have? Probably. If you don't know if any members of the board might be LGBTQIA, then you are probably not creating an environment where everyone feels comfortable with who they are." Financial Times Fabrice C Houdart Human Rights Campaign Out in Finance https://lnkd.in/e4B72gNN

Colorful Capital co-founder William Burckart is featured in a new piece today in Barron's PENTA on "Finding LGBTQ-Focused Investments Can Be Difficult. Here’s Where to Begin." The article covers a lot of ground and, in particular, reinforces the economic case of investing in #LGBTQIA+ led ventures. From the article: "There are economic reasons to consider LGBTQ investments: Multiple studies show correlations between diversity among firm leadership and company performance as measured by internal rates of return, risk management factors, and firm valuations. “From a purely financial benefits perspective, there’s real value in beginning to embrace and integrate that kind of diverse thinking,” Burckart says." A big thank you to Rob Csernyik for a great piece. An additional thank you to Abby Schultz for continuing to reinforce for readers of Barron's PENTA the need for investors to take a system-level approach to managing systemic risks like LGBTQIA+ inequity. #impactinvesting #VC #venturecapital Read the Barron's article here: https://lnkd.in/eQ-cTSVC Want to learn more about how the LGBTQIA+ community plays an important role for investors seeking impact and financial returns? Check out a new op-ed in New Private Markets from Priya Parrish, the CIO of Impact Engine and a member of the Colorful Capital Advisory Group. From the piece: "While sexual orientation may be harder to see on the outside, LGBTQ+ founders and entrepreneurs still face significant hurdles when it comes to equal access to financial and social capital. But our track record as successful innovators shows that eliminating these barriers would be a boon for the whole of society." Read Priya's article here: https://lnkd.in/ex2tVbEY Copying in the rest of the brain trust: Co-GPs Megan Kashner and Soltan B., and Sloane Ortel, Zach Stafford, Steven Godeke, Otho Kerr, Katrina Ngo, Christopher Barrett Politan, Lara Metcalf, and Carlos Vargas, Ph.D. https://lnkd.in/eQ-cTSVC

We're pleased to share a new piece out today on "Investors' role addressing intergenerational risk of LGBTQIA+ inequity" for Pensions & Investments. The article, co-authored by Colorful Capital Co-Founder and Co-GP William Burckart and Colorful Capital's DEI and Impact Management Lead Lloyd He, builds on our recently released report "Outsized Impact: How Investment Can Address the Systemic Risk of LGBTQIA+ Inequity." The report argues that exclusion of #LGBTQIA+ people and the resulting inequity it has created translates into investors losing out on significant economic opportunity and performance (beyond such exclusion being morally abhorrent). [Read the "Outsized Impact" report: https://lnkd.in/ggxWUP5f] In particular, the article delves deeper into how the financial community — encompassing financial services, corporate leaders and investment decision-makers — is uniquely positioned to leverage investor responsibility as financial stewards in advancing responsible, remunerative and equality-oriented progress. To guide their decisions and actions, investors should set goals to address LGBTQIA+ inequity at the system level, including (1) promoting LGBTQIA+ equity at U.S. corporations and financial institutions, (2) increasing access to capital for the broad LGBTQIA+ community, (3) improving wealth-generating financial outcomes for LGBTQIA+ founders, (4) contributing to the development of LGBTQIA+-equitable social structures, (5) driving financial inclusion to spur economic growth and social cohesion, and (6) improving data capture and infrastructure related to dimensions of LGBTQIA+ progress. All of these goals will be front of mind when William joins Patrick Driscoll, Amy Siskind, Jesse Beck, Brian Richardson, Vivienne Ming, Lorine Pendleton, and other LGBTQIA+ leaders tomorrow at The White House-hosted "Pride VC Ecosystem Roundtable" event. #impactinvesting #VC #systemschange Copying Colorful Capital Co-GPs Megan Kashner and Soltan B., as well as the brain trust: Sloane Ortel, Zach Stafford, Steven Godeke, Otho Kerr, Priya Parrish, Katrina Ngo, Christopher Barrett Politan, Lara Metcalf, and Carlos Vargas, Ph.D. https://lnkd.in/gc9fUkvt

Two of Colorful Capital GPs William Burckart and Soltan B., and Advisory Group member Sloane Ortel, are featured in Inc. Magazine’s Pride in Business profile on “20 LGBTQ Business Leaders on Importance of Visibility.” Here's what they had to say: "There's this prevailing culture where gay people, broadly defined, were not included in these kind of circles of trust. They're not getting invited to the golf course to make new connections. They're not getting invited to the cocktail parties because maybe so-and-so's wife isn't comfortable with [same-sex relationships]. I think this reinforces the need for groups like StartOut, and Out in Finance, where you can find your community and then kind of leverage progress that's already been made by others." - William Burckart, co-founder of Colorful Capital, head of TIIP - The Investment Integration Project, and professor at Columbia | SIPA / Sustainable Investing Research Initiative (SIRI) “I have done a lot of advising of LGBTQ founders, and have some very simple advice: Do your homework on the market you're trying to enter, and before you speak to anyone be able to answer the questions, 'Why you? Why this problem? Why now?' And be really excited about your answers to these questions.” - Soltan Bryce, general partner at Colorful Capital "I think that for folks who are wondering how they make space for themselves in the industry, just know that there will be places where you simply should not work. It is foolish to believe that you can fundamentally augment or shift anything just by virtue of being a queer person in a boardroom. So what you need to do, if you are interested in having some kind of real impact, is find a special place. Either build it, or get there." - Sloane Ortel, chief investment officer of Ethical Capital Investment Collaborative and member of the Advisory Group for Colorful Capital Read the full article for insights from other #LGBTQIA+ leaders, including M.V. Lee Badgett of Koppa - The LGBTI+ Economic Power Lab and the author of the introduction to Colorful’s latest report on "Outsized Impact," as well as Marisa Hodgdon, co-founder and managing partner of sidelines.vc: https://lnkd.in/gJc2RBEP Read the Outsized Impact report here: https://lnkd.in/ggxWUP5f Thank you, Inc, Mike Hofman, and Tim Crino. #VC #venturecapital #impactinvesting Copying in Megan Kashner and the rest of the brain trust: Zach Stafford, Steven Godeke, Otho Kerr, Priya Parrish, Katrina Ngo, Christopher Barrett Politan, Lara Metcalf, Carlos Vargas, Ph.D.

Thank you, Aoifinn Devitt, for capturing these important stories. We're thrilled that Colorful Capital is among such incredible organizations with these fabulous leaders. We can't wait to listen! Tune in to Fiftyfaces Productions Ltd. across the month of June to hear interviews with the individuals shown below, including our co-GP, Soltan B..

While #Pridemonth sees corporations adorning their logos with rainbows to show solidarity with the #LGBTQIA+ community, it's crucial to recognize that deep-rooted disparities persist, carrying substantial economic implications. This prompts the question: How can investors take tangible steps to address the long-standing exclusion of the #LGBTQIA+ community and harness the associated benefits? In Colorful Capital’s latest report, "Outsized Impact: How Investment Can Address the Systemic Risk of LGBTQIA+ Inequity," a new set of actionable frameworks details the ways in which investors can extend existing portfolio management tools and adopt advanced techniques to drive LGBTQIA+ equity. The report, co-authored by William Burckart and Lloyd He, carries significant weight. It advocates for establishing system-level goals across multiple dimensions of LGBTQIA+ progress at three levels: within their portfolios, the financial industry, and broader social structures. This strategic approach not only promises improved social outcomes but also holds the potential to boost financial returns, market valuations, and GDP growth. Stay for the report, but start with the introductory letter by M.V. Lee Badgett of The Williams Institute at UCLA School of Law and Koppa - The LGBTI+ Economic Power Lab. Want to learn more and arrange an overview of key findings? Email the Colorful Capital team at contact@colorful-capital.com The report draws from the work of TIIP - The Investment Integration Project—and was produced with contributions from the Columbia Impact Investing Initiative at Columbia University: Daniel J. Sheehan, Olivier Bordeleau-Lavoie, and Vaishnavi Kulkarni. CC’ing: Megan Kashner, Soltan B., Sage Kashner, Olivia Grinker, Cindy (Tzu-Hsin) Kuo, Philip Su, Sloane Ortel, Zach Stafford, Steven Godeke, Otho Kerr, Priya Parrish, Katrina Ngo, Christopher Barrett Politan, Lara Metcalf, Carlos Vargas, Ph.D. #venturecapital #impactinvesting #systemschange https://lnkd.in/eAp3TZAZ

We are happy to officially announce that Soltan B. has joined the Colorful Capital General Partnership. Soltan joined the broader Colorful Capital team in 2022 as a Venture Partner focused on healthcare and technology deal diligence. Soltan's expertise in go-to-market, customer acquisition, and revenue strategy through his experience launching, growing, and advising VC-backed startups and corporate business units complement Megan and William's skills and functional expertise. Additionally, Soltan brings a broad and deep network to Colorful Capital that will benefit portfolio companies and completes our leadership team. Learn more about his background on our site https://lnkd.in/eEcWnvwc.